Front Matter

Contents

Acknowledgments

I appreciate the financial support of the Upjohn Institute and the Pew Charitable
Trusts for the research for and writing of this book. In addition, I appreciate
the financial support of the Upjohn Institute and the Pew Charitable Trusts,
along with that of the Committee for Economic Development, for the research
that led up to this book. The findings...

1. Introduction

This book presents arguments for the following propositions: Local1
economic development strategies in the United States should include
extensive investments in high-quality early childhood programs, such
as prekindergarten (pre-K) education,2 child care, and parenting assistance. Economic development policies...

2. The Nature and Importance of Local Economic Development Benefits, and How They Are Affected by Labor Demand and Labor Supply

What is local economic development in the United States? Should
we care about local economic development? Why? What are local economic
development’s benefits? Which of these benefits is most important?
What public policies best provide these benefits? By addressing
these questions, this chapter provides...

3. Estimated Economic Development Effects of Well-Designed Business Incentive Programs

For each dollar invested in this well-designed business incentive
program, the present value of per-capita earnings of the original
state residents will increase by $3.14. As explained in the
previous chapter, this increase in state per-capita earnings is this
book’s definition of economic development benefits. The...

4. The Economic Development Effects of High-Quality Early Childhood Programs

The previous chapter estimated how a state’s economic development
is affected by business incentives. This chapter estimates how a
state’s economic development is affected by early childhood programs.
These economic development benefits are effects on the earnings per
capita of state residents. Early...

5. Design Matters: What Features of Business Incentive Programs and Early Childhood Programs Affect Their Economic
Development Benefits?

The preceding chapters have argued that business incentive programs
and early childhood programs can provide large economic development
benefits, if these programs are high-quality programs. But what
constitutes quality in these programs? What program designs are most...

6. Dealing with the Known Unknowns: How Policymakers Should Deal with
Dueling Estimates from Researchers

Thus far, this book’s analysis of business incentives and early childhood
education has ignored that these benefits are uncertain. Business
incentive programs are estimated to increase the present value of state
residents’ earnings per dollar spent by $3.14. Early childhood programs
are estimated to increase...

7. Bringing the Future into the Present: How Policymakers Should Deal with the
Delayed Benefits of Early Childhood Programs

As discussed in Chapter 4, early childhood programs and business
incentives differ in their benefits’ timing. Business incentives deliver
sizable economic development benefits almost immediately. Jobs are
attracted, and this immediately increases employment rates and upgrades
many state residents to better jobs. In...

8. Who Benefits? Distributional Effects of Early
Childhood Programs and Business Incentives,
and Their Implications for Policy

First, effects on different income groups may change these programs’
social benefits. In this discussion, I assume that programs that
tilt benefits toward the poor are more socially desirable. Policymakers,
policy analysts, and voters may favor such a tilt because of special concern
for the poor. Alternatively, policymakers...

9. Locality Matters: How Economic Development Benefits
Vary in Diverse Local Economies

In this book, up until now, the analysis has focused on economic
development benefits for a typical state. For example, consider my
statement that high-quality universal pre-K education produces $2.78
in economic development benefits per dollar of costs. That statement
is true for an “average U.S. state.” In an...

10. The National Perspective: How Local Business Incentives and Early
Childhood Programs Affect the National Economy

Thus far, this book has adopted the perspective of a state or local
policymaker. This perspective focuses on what a state or local area’s
business incentives or early childhood programs can do for that state or
local area. Any benefits or costs of this state’s policies for other states
are irrelevant...

11. The Ethics of Early Childhood Programs and Business Incentives

But early childhood education and business incentives can also be
discussed from a philosophical perspective. Do these programs violate
or promote any ethical principles? Do these programs violate any principles
about the appropriate role of government? An ethical perspective
would also include a consideration...

12. Extending Economic Development Analysis to Other Human Development Programs: Education, Public Health, Crime Reduction

Early childhood programs are just one type of human development
program. The economic development analysis that I have applied to early
childhood programs can be applied to other programs than enhance
human capital. Any program that increases the quantity or quality of
human capital will stimulate earnings...

13. Thinking and Acting Locally: What Potential Is There for Local Support for
High-Quality Early Childhood Programs?

While working on this book, I have also been involved in efforts
to implement universal pre-K education in my home community, Kalamazoo,
Michigan. A local interfaith community organizing group,
ISAAC, adopted early childhood education as an issue. (ISAAC is
affiliated with the Gamaliel Foundation...

References

The Author

Timothy J. Bartik is a senior economist at the W.E. Upjohn Institute for
Employment Research. His research focuses on state and local economic
development and local labor markets, including research in the following areas:
evaluating economic development programs, the effects of taxes and public
services on economic development...

Index

About the Institute

The W.E. Upjohn Institute for Employment Research is a nonprofit research
organization devoted to finding and promoting solutions to employment-related
problems at the national, state, and local levels. It is an activity of the
W.E. Upjohn Unemployment Trustee Corporation, which was established in
1932 to administer a fund set aside...

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